A landmark proposal to protect private property was formally introduced into China’s legislature amid continuing controversy, and in one possible sign of the legislation’s sensitivity, the latest issue of an influential Chinese business magazine that covered it was pulled earlier this week.

It wasn’t immediately clear who blocked the issue of Caijing — a move that came during one of the busiest periods in China’s political calendar — or why. But according to a person familiar with the situation, the issue included articles, among others, on the bankruptcy of a government-controlled brokerage firm and on the piece of property-rights legislation, which has drawn vocal criticism.

A revised edition of the biweekly, which is normally distributed on Mondays, is to hit newsstands Friday, according to the person. Thursday evening, Caijing‘s Web site displayed an issue dated this week with a cover story about the Chinese stock market’s ups and downs and a table of contents that doesn’t mention the articles about the property legislation or the brokerage firm. [Full Text]

UPDATE: Also according to Ming Pao Daily in Hong Kong, one article in this issue of Caijing is about the Xiangcai Securities Company. Xiangcai’s major shareholder is the Shandong Luneng Group.

In the January issue of 2007, the cover story of Caijing reports that more than 70 billion yuan of state assets had been acquired by the Luneng Group at the reduced value of 3.8 billion yuan, attracting enormous repercussions, and SASAC had intervened to investigate. Ming Pao Daily reported that although the Luneng privatization affair had come to light, interests in the background involved some higher-ups, making it a sensitive topic. Therefore, this article about Xiangcai Securities could be the real reason why Caijing magazine being pulled this time.